Santiago Principles Self-Assessment

Agaciro Development Fund

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  • Pillar 1: Legal
  • Pillar 2: Institutional
  • Pillar 3: Investment
Principle 1

1. The legal framework for the SWF should be sound and support its effective operation and the achievement of its stated objective(s).

1.1. The legal framework for the SWF should ensure legal soundness of the SWF and its transactions.

1.2. The key features of the SWF’s legal basis and structure, as well as the legal relationship between the SWF and other state bodies, should be publicly disclosed.

Agaciro Development Fund (AGDF) was officially launched on 23rd August 2012 by His Excellency the President of the Republic of Rwanda, Paul Kagame. AGDF is registered with Rwanda Development Board as a trust fund under registration No. 103050268 and operates in accordance with Law No 20/2013 of 25/03/2013 regulating the creation of trusts and trustees as a Sovereign Wealth Fund wholly owned by the people of Rwanda.

AGDF operates under the custodianship of the National Bank of Rwanda (BNR) and reports quarterly and annually to the Ministry of Finance and Economic Planning which is its supervisory authority.

Principle 6

6. The governance framework for the SWF should be sound and establish a clear and effective division of roles and responsibilities in order to facilitate accountability and operational independence in the management of the SWF to pursue its objectives.

AGDF is governed by the Board of Trustees. The Board membership is approved by the Cabinet meeting. The Board is accountable to the Government of Rwanda, through the Ministry of Finance and Economic Planning, in ensuring that AGDF complies with laws and the highest standards of corporate governance. The functions, structure and overall governance of the board are clearly set out in the Board Charter.

Principle 18

18. The SWF’s investment policy should be clear and consistent with its defined objectives, risk tolerance, and investment strategy, as set by the owner or the governing body(ies), and be based on sound portfolio management principles.

18.1. The investment policy should guide the SWF’s financial risk exposures and the possible use of leverage.

18.2. The investment policy should address the extent to which internal and/or external investment managers are used, the range of their activities and authority, and the process by which they are selected and their performance monitored.

18.3. A description of the investment policy of the SWF should be publicly disclosed.

AGDF Investment Policy statement, including objectives and investment strategy, is published on our website.

The AGDF aims to support Rwanda’s economic security and development and build wealth for future generations of Rwandans.

AGDF is a professional and prudent institutional investor with a long-term investment horizon. This enables it to seek out sustainable real returns and ride out short-term economic and financial market fluctuations. AGDF aims to achieve above-average real returns while maintaining risk within acceptable limits, so as to preserve capital.

AGDF’s long-term objectives and expected economic and market conditions determine the choice of asset classes and their weights in the Fund. The Board reviews the Fund’s asset allocation periodically for consistency with the objectives and evolving opportunities and risks.

Information about the AGDF asset allocation is available on our website.

The criteria and procedures for recruitment of internal investment managers are clearly set out HR Policy. The Chief Investment Officer is the lead manager. As to the hiring of External Fund Manager (“EFM”), we have not yet hired one, but Guidelines thereon have been established to address the process by which they are selected and how their performance is monitored.